Equity release: Your questions answered


As we get older, life’s twists and turns bring all sorts of challenges and opportunities our way. Many of our biggest challenges and opportunities are not financial, but quite often they do have financial considerations.


If you are over 55 years old, and need to raise funds, equity release* may be worth considering. We have advised many homeowners on the advantages and disadvantages of equity release, and here are some of the most frequently asked questions:


Q. What is equity release?

A. Equity release is a way to release cash from the value of your home without selling up and moving.


Q. What can you use equity release for?

A. That’s really up to you. Maybe you want to improve your home, go on the holiday of a lifetime, help your children out or supplement your income. Or perhaps you want to fund the cost of future care, without having to sell your home. Whatever you need to raise funds for, equity release can help.


Q. How does it work?

A. Equity release is a long-term loan against the value of your home. It’s usually repaid from the sale of your home, either when you (and, in the case of a joint lifetime mortgage, your partner) die or go into long-term care.


Q. Is there a downside?

A. Taking on a lifetime mortgage, or any other type of equity release, will reduce the amount of inheritance you can leave to beneficiaries. It could also affect your tax position and your eligibility for benefits. As well as taking professional advice, it’s always sensible to discuss things with your family.


Q. How do I know if equity release is right for me?

A. You need to take advice. Equity release, like any financial commitment, is a big decision.


Here at BCM Wealth Management in Stamford, we have advised many homeowners on the advantages and disadvantages of equity release. We always put your interests first.


Find out more by calling us on 01780 437500 to arrange an informal chat or email Simone.Harley@sjpp.co.uk


If you do not keep up with your mortgage repayments, your home or other property are at risk of being repossessed.


*This is a lifetime mortgage or home reversion plan. To understand the features and risks associated with such products, please ask for a personalised illustration.